Deepcoin provides another exit option, known as Trailing Stop, which is a more flexible variation of a normal exit order. A trailing stop will allow a stop order to follow the last traded price based on a pre-set distance and direction, and will automatically move to lock in the profit or stop loss.
When users set or adjust a trailing stop on Deepcoin, you can go to the 'Order' or 'Position' area and set the desired trailing distance.
A trader opens a long position of BTCUSD contracts at 8000 USD, and sets a trailing distance of 500 USD.
If the last traded price never exceeded 8000 USD, the trailing stop will be triggered at 7500 USD just like a normal stop loss.
If last traded price moves to 9000 USD, the trailing stop price will automatically be adjusted upward by 1000 USD, and the trailing stop will be triggered at 8500 USD.
Stop loss will be triggered only if there is any retracement of 500 USD from the highest price reached. (Check following diagram for reference)
Setting up a trigger price to activate the trailing stop
When setting up a trailing stop order, a trader has the option to set up a trigger price to activate the trailing stop.
The current last traded price is 7000 and the trader is holding a long position. He wishes to place a trailing stop of distance 500 only when last traded price has reached 8000.
The trader simply has to enter 8000 in the trigger price and 500 in the trailing stop.
When last traded price reaches 8000, the trailing stop order will be placed and the starting trigger price of the trailing stop order will be 8000-500 = 7500 USD